FDIC to Release Stablecoin Rules Under GENIUS Act This Week
The U.S. Federal Deposit Insurance Corporation (FDIC) is poised to unveil its proposed regulatory framework for stablecoins under the GENIUS Act. Acting Chair Travis Hill confirmed the agency's plans to establish licensing and supervision standards for issuers nationwide, marking a pivotal shift from fragmented state-level oversight.
The GENIUS Act, enacted in July, creates the first federal structure specifically governing stablecoins. It assigns coordinated responsibilities to the FDIC, Federal Reserve, OCC, and NCUA—a MOVE that could streamline compliance for crypto-native firms and traditional financial institutions alike.
FDIC-insured banks seeking to launch stablecoins through subsidiaries will face rigorous oversight. The agency will mandate capital requirements, liquidity safeguards, and reserve management protocols—a regulatory moat that may reshape competition in the $160B stablecoin market.
